But zooming out, Cryptos actually led the sensational rally that eventually spread to other assets.

Bitcoin kicked off the 2024-2025 frenzy as early as January 2024, trading at $40,000 before peaking at $126,000 19 months later – a +3X increase.

As a matter of fact, looking at past cycles, cryptocurrencies have often acted as a leading indicator, rising and falling weeks or even months before other asset classes.

This happens for a simple technical reason: they sit at the very top of the risk spectrum.

Consequently, they are the first to see demand dry up when uncertainty arises—conditions we saw clearly during the October-November period as layoffs rose and fears of an “AI Peak” bloomed.

So, where do things stand now?